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A, B and C share profits in the ratio 2:6:2. After C’s death, the new profit-sharing ratio of A and B is 5:15. What is the simplest form of this ratio?

Answer and explanation

Correct answer: 1:3

The greatest common divisor of 5 and 15 is 5. Dividing both terms by 5 gives 1:3. Option B is the given ratio, not its simplest form, while option D is also equivalent but not fully simplified. In exams, always divide both terms by their greatest common divisor before writing the final ratio.

Related tags

AccountancyPartnershipReconstitutionNew RatioRatio SimplificationRetirement Of PartnerNew RatiosReconstitution Retirement Or Death Of A Partner

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